KUWAIT PRICES ARE RISING. AND CONSTRUCTION INDUSTRY IS SUFFERING

  • 10/06/2022

Kuwait City: The prolonged conflict between Russia and Ukraine continues to have a severe impact on many Arab countries, including Kuwait. The interconnection of the countries that comprise the global economic system has resulted in extraordinary price inflation of basic goods in the markets, driven by the high cost of transportation. The local building industry is one of the most affected by the price increase. 


Defects in the contracts of some building projects, which increases the risk of being exposed to a wave of contract terminations between contractors, corporations, and individuals, a portion of which has already begun. Some contractors refused to implement contracts that they signed at the start of the year but did not begin implementing for reasons connected to licence issuing or considerations related to either party. 

They justified this with compelling reasons related to an unprecedented increase in the prices of construction goods. This led to high inflation rates that have strained the contractors’ ability to continue with the implementation. It was learned that contractors reported to some clients that they were unable to bear the difference from their budget, unless the contract value was reconsidered.

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